Final 12 months, a few quarter of all medical insurance claims had been denied in California — a actuality mirrored nationwide that has stoked public anger towards well being care firms, and led to accusations that such selections lack human empathy.
However this month, a brand new state legislation is taking up the most recent twist within the debate, guaranteeing {that a} human’s perspective can’t actually be faraway from such selections by prohibiting protection denials be made on the only real foundation of synthetic intelligence algorithms.
Signed by Gov. Gavin Newsom final September, Senate Invoice 1120 — often called the “Physicians Make Choices Act” — comes as frustration with the medical insurance system has intensified. Final month’s high-profile killing of UnitedHealthcare government Brian Thompson in New York Metropolis ignited a wave of reactions that usually mirrored the general public’s anger.
In accordance with 2024 knowledge from the California Nurses Affiliation, roughly 26% of insurance coverage claims are denied, one in all many components that impressed the legislation’s main creator, state Sen. Josh Becker, a Menlo Park Democrat.
“In 2021 alone, (nationwide) knowledge confirmed that medical insurance firms denied greater than 49 million claims,” stated Becker, citing knowledge from the Kaiser Household Basis. “But prospects appealed lower than 0.2% of them.”
In November 2023, a lawsuit towards UnitedHealthcare spotlighted issues in regards to the misuse of AI in medical insurance decision-making, accusing the corporate of utilizing synthetic intelligence to disclaim claims.
Whereas SB 1120 doesn’t solely prohibit using AI expertise, it mandates that human judgment stays central to protection selections. Underneath the brand new legislation, AI instruments can’t be used to disclaim, delay or alter well being care companies deemed medically mandatory by docs.
“An algorithm can’t absolutely perceive a affected person’s distinctive medical historical past or wants, and its misuse can result in devastating penalties,” Becker stated. “This legislation ensures that human oversight stays on the coronary heart of well being care selections, safeguarding Californians’ entry to the standard care they deserve.”
Becker emphasised the steadiness between embracing innovation and safeguarding affected person care.
“Synthetic intelligence has immense potential to boost well being care supply, nevertheless it ought to by no means exchange the experience and judgment of physicians,” he stated.
The California Division of Managed Well being Care will oversee enforcement, auditing denial charges and guaranteeing transparency. The legislation additionally imposes strict deadlines for authorizations: normal circumstances require selections inside 5 enterprise days, pressing circumstances inside 72 hours, and retrospective evaluations inside 30 days.
Underneath SB 1120, state regulators have the discretion to tremendous insurance coverage firms and decide the quantities owed for violations, comparable to missed deadlines or improper use of AI.
Erin Mellon, spokesperson for the California Medical Affiliation, which co-sponsored the invoice, underscored the significance of defending the doctor-patient relationship.
“Synthetic intelligence has the potential to enhance affected person care, nevertheless it mustn’t hurt or supplant that relationship,” Mellon stated. “Latest experiences spotlight cases the place automated instruments wrongly denied sufferers entry to medically mandatory care. Physicians typically help AI in well being care, supplied it enhances care and respects the wants of each docs and sufferers.”
Paula Wolfson, a supervisor at Avenidas Care Companions, a Peninsula-based nonprofit serving older adults, described the challenges her purchasers face when navigating insurance coverage denials.
“It causes monumental stress,” Wolfson stated. “I hear from households coping with high-risk conditions as a result of they’ll’t entry the well being care companies they want.”
Wolfson welcomed California’s proactive strategy to regulating AI in well being care.
“It offers me a glimmer of hope that policymakers are bringing frequent sense and sensibility to those selections,” she stated.
Amid rising issues over medical insurance practices, Becker famous that California’s strategy is drawing nationwide consideration.
“There are 19 states now taking a look at related legal guidelines,” Becker stated. “We’ve even been contacted by a number of congressional places of work contemplating federal laws. Our precedence helps Californians, however setting a nationwide mannequin is simply as essential.”
